HSBC set a new record low rate today but a top mortgage adviser doesn’t expect more rate drops to follow.

New Zealanders should switch their bank accounts to Kiwibank, or any wholly-owned NZ bank, according to Social Credit leader Chris Leitch.

“New Year is the ideal time for Kiwis to display some patriotism, and get themselves out of the clutches of the overseas-owned banks,” he said.

Leitch claims the Australian owned ANZ NZ, ASB, BNZ and Westpac NZ create a “major drain on the New Zealand economy.” He says that the Aussie banks saw over $5.128 million in profit last year, which is four times more profit than the 10 largest companies on the NZ Stock Exchange.

“The government should take a lead by swapping its own borrowing to Kiwibank, rather than seeking money from the Aussie big four or other overseas-owned financial institutions as it currently does,” Leith said. “If [it] had any backbone, it would instruct Kiwibank to marginally lower their lending rates and slightly increase their deposit rates as an incentive for people to make the switch.

“This, in turn, would provide some real competition for the Aussie banks and benefit all New Zealanders through better borrowing and deposit rates.

“That extra money in people’s pockets would further boost the New Zealand economy,” he added.